Ask HN: Registration of a domain name and employee IP

#1

Post by jackfruit2 » Thu, Dec 30, 2021, 6:27 PM UTC

Does the purchase of a domain name by an employee for a side project automatically become their employer's intellectual property under assignments agreement?

I'm looking to leave my current employer to bootstrap a start up and feel the urgency to buy the domain name immediately in readiness for the intense development and marketing that would follow. I've signed one of these assignment agreements as part of the employment contract a few years back but now want to press ahead with my own dream of a new start up. Could the purchase of the official domain now signal that I have started the project whilst employed by my current employer?

I was wondering if anyone had a similar situation that could offer some insight, other than the standard advice of speak to a lawyer?

Re: Ask HN: Registration of a domain name and employee IP

#2

Post by patio11 » Thu, Dec 30, 2021, 7:04 PM UTC

This seems like a poorly thought out question; the IP rights would become the employer's or not based on what was created, when, and how. The domain purchase being public only marginally changes the risk calculus and doesn't change the legal calculus.

From a risk calculus perspective, it only matters in the case you actually produce something of value but then becomes a landmine buried deep near the heart of the company, and the risk of that landmine can blow up later things you'd like to do like e.g. accept investment or sell the company. Your competent legal advisers will generally tell you "Do not do things which cloud IP ownership, and in fact, spend material amounts of time and money to do things which uncloud IP ownership such as e.g. getting IP assignments from your employees."

The biggest flag I'd raise, as someone who also gets domain fever occasionally, is that buying a domain name is a very tiny amount of the effort involved in a new project.

Re: Ask HN: Registration of a domain name and employee IP

#3

Post by jackfruit2 » Thu, Dec 30, 2021, 7:43 PM UTC

patio11 wrote: post #2

This seems like a poorly thought out question; the IP rights would become the employer's or not based on what was created, when, and how. The domain purchase being public only marginally changes the risk calculus and doesn't change the legal calculus. From a risk calculus perspective, it only matters in the case you actually produce something of value but then becomes a landmine buried deep near the heart of the comp…

Ah ok thanks for your response. So if the actual product was realised after leaving the employer (or officially) that's what would be considered the IP, even if the product name was established whilst employed? My plan is to perform all the research around the periphery of my idea and start the actual build (based on several PoCs) when free of my obligation to my employer (i.e. have left).

I agree buying the domain name is little effort whilst it's available. Seeking the services of a domain broker is not so easy if the domain is squatted on by procrastinating.

Re: Ask HN: Registration of a domain name and employee IP

#4

Post by amerkhalid » Fri, Dec 31, 2021, 1:00 AM UTC

IANAL but it should not be an issue, in theory. Most of those IP assignment clauses cannot be enforced in court. But your employer can still sue you and their war chest is likely be bigger than yours.

Maybe to avoid any frivolous lawsuits, register domain name using gift card under fake name. And once you are ready, buy it from that fake account. Again if you are really worried, talk to a lawyer.

Re: Ask HN: Registration of a domain name and employee IP

#5

Post by jackfruit2 » Fri, Dec 31, 2021, 11:52 AM UTC

amerkhalid wrote: post #4

IANAL but it should not be an issue, in theory. Most of those IP assignment clauses cannot be enforced in court. But your employer can still sue you and their war chest is likely be bigger than yours. Maybe to avoid any frivolous lawsuits, register domain name using gift card under fake name. And once you are ready, buy it from that fake account. Again if you are really worried, talk to a lawyer.

Or maybe I could get a family member/friend to buy it and sell it back to me when i'm ready haha.